Why It’s Important to Have Witness Signatures on Your Brazilian Contracts

In US contracts, it’s uncommon to see witness signatures except in very specific circumstances. In Brazil, however, all types of contracts often include fields for two witness signatures. While you might think it’s just an old habit, in fact there’s some real legal significance to it.

Say you signed a contract to sell your car. You’re supposed to deliver the car and the buyer is supposed to pay you for it. But what happens if you never get your money?

That’s exactly the reason for having witnesses sign the contract.

Litigating a contract dispute when the agreement lacks witnesses can take time. First, you need to start a lawsuit for a judge to review the contract and evaluate whether or not you have a valid claim. Then, once you have a judgment or título executivo judicial, you must file a separate lawsuit to enforce the judgment and collect.

However, if the contract was signed by two witnesses, you can likely skip the first step. This is because according to the Brazilian Code of Civil Procedure, you’d already have a título executivo extrajudicial. This means you can immediately file an enforcement action (ação de execução) and collect on the buyer’s assets.

In short, having those two witnesses can actually help in case the other party breaches the agreement. So the next time you sign a contract in Brazil, double check that the two witness signature lines are there and are signed. They could come in real handy.